Seoul, Korea, March 6, 2002
hynix Semiconductor Inc. (hynix, www.hynix.com) announced today that, as of January this year, it has a recurring profit in its financial results. hynix’s profit for the first two months of 2002 is a result of internal cost-cutting measures and a rise in DRAM prices attributable to an upturn in the global IT industry, as well as an overall increase in semiconductor demand.
In 2001, hynix, along with the entire semiconductor industry, suffered from a steep drop in DRAM demand and a resultant drop in DRAM prices. For January and February 2002, however, the Company has expects 550 billion won in revenue and 110 billion won in operating profit for the same period.
hynix recorded total revenue of 3.98 trillion won in 2001, down 55% from 2000. Operating loss in 2001 was 1.29 trillion. As of the end of 2001, hynix held a net asset value (shareholder’s equity) of 5.24 trillion won and maintained a gearing ratio of 120 percent. As hynix announced in its quarterly settlement last year, the Company reflected all financial losses incurred from non-core asset sales, development cost write-offs and overseas subsidiaries.
To maintain our priority on financial transparency, hynix included the non-recurring loss of 3.77 trillion won, which does not generate cash outflow, in non-operating expenses. hynix adopted conservative accounting criteria in its 2001 results to eliminate potential non-recurring losses, ensure its financial soundness and maximize its profit in the improving semiconductor market.
To address the difficult environment of 2001, hynix spun-off all of its non-semiconductor business operations in the first half of 2001. hynix has improved its financial structure by raising $1.25 billion dollars through the issuance of Global Depository Receipts, selling off non-core assets and securities and obtaining a comprehensive debt restructuring from creditors.
To ensure its price competitiveness, hynix completed its ‘Blue Chip’ technology project which enables ultra-fine geometry with less than one-third the investment normally required to develop this class of technology. hynix also focused on high value-added products, including next generation DDR memory chips, and enhanced its non-DRAM operations to provide a balanced product portfolio. hynix has shortened the product development period from two years to less than one year and production ramp-up period from eight months to four months by taking innovative steps in R&D. To continue this trend, hynix plans to develop 0.13 micron prime chips and 0.11 micron golden chips through its Blue Chip project to ensure a continuous technology platform and efficiency in investment and production. In addition, despite the unprecedented downturn of 2001, hynix aggressively penetrated new markets, such as China and India, where the Company now holds unmatched market dominance. hynix also launched volume production for DDR memory chips, producing more than 10 million units per month for its major customers.
### This press release contains forward-looking statements, as defined in the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements, including, without limitation, statements relating to our capital expenditures, financing and production capacity, reflect the current views of hynix with respect to future events and financial performance. Although we have used our best efforts and relied upon sources we believe to be reliable and accurate to make reasonable forward-looking statements and future financial projections, these views are subject to certain risks and uncertainties, which could cause actual results, performance or achievements expressed or implied by these statements to differ materially from historical results or those anticipated. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release provides general information on hynix Semiconductor Inc. We advice you to check hynix’s audited financial results as filed with the Korean Stock Exchange and the Korean Securities and Exchange Commission.
About hynix Semiconductor Inc.
hynix Semiconductor Inc. (hynix) of Ichon, Korea, is an industry leader in the development, sales, marketing and distribution of high-quality semiconductors, including DRAM, SRAM, Flash memory and system IC devices. hynix Semiconductor is one of the world’s leading DRAM supplier with thirteen semiconductor-manufacturing facilities worldwide and a production capacity of over 300,000 wafer starts per month. In addition, hynix is expanding its system IC business unit with leading technology and added deep sub-micron foundry services to strategically broaden its overall semiconductor presence and achieve its goal of leading the global semiconductor market. hynix maintains worldwide development, manufacturing, sales and marketing facilities.
